RevenuesThe Company saw another quarter of high revenues, amongst the highest in Company history, surpassed only by the record levels seen in 2011 and 2012. Revenue was $68.9, down from the record level of $75.9 set in the first quarter last year. Demand for tractors continues to be strong, both domestically and in the overseas market. Also contributing to the high sales levels was demand for the seeding and tillage lines.

Gross ProfitFirst quarter gross profit was a record for the Company coming in at $12.7, an increase of $1.3 over the prior year first quarter. As a percentage of sales, gross profit for the quarter was 18.4%, up from 15.0% in the first quarterlast year. The increase in margin was due to improved labor efficiencies on tractor sales, a change in sales mix and rebates on material purchases.

Income from OperationsIncome from operations were once again amongst the highest recorded by the Company in the first quarter, coming in at $6.3, an increase of $0.2 over the prior year first quarter. Selling and administration expenses were $6.4, an increase of $1.1 from the prior year. Increased spending on marketing and salaries are responsible for most of this increase. As a percentage of sales, selling and administration expenses was 9.3%, an increase of 2.4% from the prior first quarter.

Net EarningsNet earnings were $4.7, up $1.4 from the prior year first quarter earnings of $3.3. Improved margins, decreased interest costs and gains on foreign exchange resulting from the weaker Canadian dollar are the main causes of thisincrease in earnings. Offsetting the improvements above was an increase in research and development expenses.